The Virginia Association of Realtors monitors trends regularly, their statistics show signs of improvement.
How soon varies depending on who you talk to. Some say we will see more definite upward trends by 2010, it is hard to say exactly when.
We have noticed a lot of movement in the market in the 200ks range (short sales and/or foreclosures).
If a house is correctly priced it will sell no matter the range, and that is the hard part for some people to understand. The prices we saw 3 years ago where like a mirage and will not come back, at least for quite some time. Once you get pass that thought then you realize that everyone is in the same boat, if you are selling to buy then it does not matter because the house you are buying will also be at the same price range, unless you bought at the peak.
I can provide you with a real CMA based on sold comps of similar properties in your area.
Let me know if I can be of help.